Tokyo Governor Koike: No need for big change in monetary policy

Reuters Staff

Tokyo Governor Yuriko Koike, head of Japan's Party of Hope, smiles next to a Japanese national flag during an interview with Reuters in Tokyo, Japan October 6, 2017.

Reuters/Issei Kato

TOKYO (Reuters) - Tokyo Governor Yuriko Koike, whose new conservative party is challenging Japan's ruling bloc in an Oct. 22 election, said on Friday there was no need for a major change in the Bank of Japan's hyper-easy monetary policy and there should not be any sudden change under the next central bank chief.

In an interview, Koike told Reuters the BOJ had adopted a hyper-easy monetary policy, adding: "Unfortunately, this has not cured deflation. But I think there is no need for a big change in direction."

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Asked about desirable policy under the next BOJ governor, she said, "There will probably be parts that are an extension of current policy. If there were a sudden change, I think that would have an impact on the stock market."

BOJ Governor Haruhiko has been the main architect of monetary policy under Prime Minister Shinzo Abe, and his 5-year term expires in early April 2018.